# Valeura Energy Inc. Reports Strong Production, Q4 Outlook and Share Buyback Highlighted by Auctus Advisors

- Link: https://www.directorstalkinterviews.com/valeura-energy-inc.reports-strong-production-q4-outlook-and-share-buyback-highlighted-by-auctus-advisors/4121177240
- Published: 2024-11-14T08:25:03+00:00
- Author: Anthony Fox

**[Valeura Energy Inc](https://www.directorstalkinterviews.com/company/valeura-energy-inc/vle.to).**(
TSX: VLE/OTCQX: VLERF) has delivered promising news for investors with a high level
of production and robust cash flow expected in the fourth quarter of 2024. With 
the share price currently at C$5.40, Auctus Advisors LLP has reaffirmed its target
price of C$10.00 per share, driven by the company’s strong fundamentals and recent
strategic moves.

According to Auctus’ latest report, production in September and October reached 
an impressive ~26,400 barrels per day, well above previous forecasts. Valeura is
now projecting Q4 production to average around 26,000 barrels per day. “This is 
very high,” remarks Stephane Foucaud, Research Analyst at Auctus, who had initially
assumed a production range of 24,000-25,000 barrels per day. This high production
output, combined with notable liftings early in October, sets Valeura up for a strong
cash flow position as it heads toward the end of the year. At the close of Q3, the
company held an impressive crude oil inventory of 1.2 million barrels, with a substantial
portion already lifted in early October, indicating robust free cash flow in the
upcoming quarter.

Valeura has also introduced a share buyback programme aimed at acquiring up to 10%
of its free float, which is equivalent to 7.4 million shares. This move, Auctus 
suggests, “sends a positive signal with regards to the strength of the fundamentals
of the business and of the balance sheet following the corporate restructuring given
that Valeura continues to look for acquisitions.” The share buyback is expected 
to provide further support to Valeura’s share price, reflecting confidence in its
long-term growth strategy.

Foucaud notes that the outlook for Valeura’s reserve replacement ratio in 2024 remains
high due to successful drilling activities and strong performance from its Nong 
Yao fields. In addition, the anticipated sanctioning of the Wassana redevelopment
project in early 2025 is set to increase reserves further. Auctus maintains a Core
NAV for Valeura of approximately C$7.20 per share based solely on existing reserves
and a ReNAV of C$9.64 per share, which incorporates the additional value expected
from Wassana, Nong Yao D, and future exploration at Ratree.

The report does temper the outlook slightly by adjusting Brent crude assumptions
down from US$80 to US$75 per barrel in Q4 2024. However, Valeura’s financial position
remains robust, with Auctus estimating a net cash position of around US$400 million
by the end of 2025, assuming an average Brent price of US$75 per barrel.

**In Summary**

Valeura Energy Inc. is positioning itself strongly for the future, with high production
rates, an active share buyback programme, and a focus on enhancing its reserves 
through strategic projects. The strong fundamentals in production, cash flow, and
inventory indicate a positive trajectory. Auctus Advisors’ target price of C$10.00
reflects confidence in Valeura’s growth prospects, making it a company to watch 
closely as we move into 2025.

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